ICF International, Inc. (NASDAQ:ICFI) Released Earnings Last Week And Analysts Lifted Their Price Target To US$167
As you might know, ICF International, Inc. (NASDAQ:ICFI) recently reported its yearly numbers. Revenues of US$2.0b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$4.35, missing estimates by 2.1%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for ICF International
Following the latest results, ICF International's four analysts are now forecasting revenues of US$2.07b in 2024. This would be a reasonable 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 21% to US$5.30. Before this earnings report, the analysts had been forecasting revenues of US$2.07b and earnings per share (EPS) of US$5.36 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 11% to US$167. It looks as though they previously had some doubts over whether the business would live up to their expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values ICF International at US$187 per share, while the most bearish prices it at US$145. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting ICF International is an easy business to forecast or the the analysts are all using similar assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that ICF International's revenue growth is expected to slow, with the forecast 5.6% annualised growth rate until the end of 2024 being well below the historical 7.2% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.4% annually. So it's pretty clear that, while ICF International's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for ICF International going out to 2025, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 1 warning sign for ICF International that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
